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China and Japan Signal
Interest-Rate Rises Ahead

By

Michael Connolly

Updated May 8, 2006 12:01 a.m. ET

While China said it might raise rates again as it underscored its new preference for market-based mechanisms to guide its economy, Japan signaled that its economy is nearing a turning point that might allow it to raise interest rates for the first time in a decade.

China's Vice Minister of Finance, Li Yong, told the Asian Development Bank's annual meeting in Hyderabad, India, that Beijing could raise rates further if needed following its rise 10 days ago, reflecting China's desire to be seen as a more market-based economy...